Gold Prices Rise as Indian Buyers Return Ahead of Festive Season

India's gold market is showing signs of recovery after a sharp price correction in June. According to the World Gold Council (WGC), domestic gold prices rose nearly 7% in the first two weeks of August to Rs 1,51,744 per 10 grams, while international prices climbed 9% to $4,391 an ounce.

The recovery is attributed to lower and more stable prices, which have brought consumers back to the jewellery market. Industry feedback cited by the WGC suggests that deferred purchases have started returning, lifting store footfalls and demand beyond essential wedding-related purchases.

Manufacturers are seeing higher order flows, while jewellers have stepped up inventory replenishment ahead of the festive season. The revival is significant because record-high gold prices had forced many consumers to postpone purchases or opt for lighter jewellery.